This book is the second in an annual series in which top economists provide a concise and accessible summary of policy development, GATT country reviews and special issues on international trade over the past year. Over a number of years the series will create a valuable reference resource, acting as a vehicle for stimulating interest in current trade policy issues both at the regional leval and at the global level.

Sven Arndt is C. M. Stone Professor of Money, Credit and Trade, and Director of the Lowe Institute of Political Economy, at Claremont McKenna College, California. He has served as Director of the Office of International Monetary Research at the US Treasury; as a visiting scholar at the Board of Governors of the Federal Reserve System, and as trade project director at the American Enterprise Institute. He is founder and President of the Commons Institute for International Economic Studies, and a vice-president of the North American Economics and Finance Association.

Chris Milner is Professor of International Economics and Research Fellow of the Centre for Research in Economic Development and International Trade (CREDIT) at the University of Nottingham. He was previously Professor of Economics at Loughborough University and has held a visiting post at Vanderbilt University. He has considerable experience of trade policy studies in developing countries, and has been a consultant to the World Bank, EC, UNIDO, UNCTAD and Commonwealth Secretariat.